Why Waiting for Cooling Measures May Not Mean Cheaper Properties

Why Waiting for Cooling Measures May Not Mean Cheaper Properties

Authored by Raymond Tiah

Thinking of delaying your property purchase, hoping that cooling measures will bring prices down? While it sounds like a smart move, history tells us otherwise. The Singapore property market has always rebounded stronger after each dip, leaving many buyers priced out.

Property Prices Tend to Rebound

Cooling measures stabilise prices—they don’t cause long-term declines. Each market dip in Singapore’s history has been followed by a new peak:

• 1996 Peak – Prices dropped but eventually rose higher.

• 2007 Peak – Prices fell during the Global Financial Crisis but rebounded strongly.

• 2013 Peak – The Mortgage Servicing Ratio (MSR) slowed growth, but prices surged again post-pandemic.

Takeaway: If you wait for prices to drop significantly, you may end up paying even more later.

Timing the Market is Almost Impossible

Many buyers try to wait for the “perfect time” to buy—but markets are unpredictable.

• Example: After the 2013 cooling measures, resale HDB prices fell for years, but during the pandemic, they skyrocketed past 2013 peaks within just three years.

Takeaway: By the time the market reaches its lowest point, demand pushes prices up faster than expected.

Future Cooling Measures Could Make Buying Harder

Cooling measures don’t always benefit everyone—they often target specific groups.

• Example: In April 2023, foreign buyers faced 60 percent Additional Buyer’s Stamp Duty (ABSD), but this did not lower prices for HDB flats or mid-tier condos.

• ABSD rates have never been reduced once increased.

• Future measures may introduce stricter loan limits or higher taxes, reducing your purchasing power.

Takeaway: Instead of waiting, focus on securing a home within your budget today.

Waiting May Cost You More

Singapore’s property market is resilient. Prices reflect strong demand, rising land costs, and high construction expenses—leaving little room for price reductions.

Looking for your dream home or a smart investment? Let me help you navigate the market and find the best opportunities today.

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